Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
The Hidden Cost of Government Rent Seeking
We dissect the mechanics of rent-seeking in modern public policy, moving beyond simple corruption to examine how regulatory capture distorts market outcomes. Using the specific case of the agricultural subsidy framework and its impact on commodity pricing, we explore why these policies persist despite their inefficiency. Lucas breaks down the economic theory behind concentrated benefits and dispersed costs, while Luna challenges the assumption that all government intervention is inherently beneficial. We also look at recent shifts in defense procurement as a counter-example of where…
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